We calculate and present two values for the total cost of loan:

  • Short term - after three years (A)

  • Full term of loan, typically 30 years (B)

These values are presented in the Compare loan products tab in broker tools:

Total costs are calculated using the following formula:

Total cost = Once-off Fees + (Periodic Fees x #Periods) + Repayment 1 x Period 1 + Repayment 2 x Period 2 + Repayment 3 x Period 3 - Offset Benefit - Cashback

Where:

  • Once off fees are upfront and settlement fees

  • Periodic fees are monthly or annual fees

  • Repayment and Periods are specified in product details section of the Compare loan products tab

  • Offset Benefit is a result of client putting funds into an offset account and is described here

  • Cashback is lender discount offer and is described here

Periods:

Fees:

In this example, total costs over the full term are:

= $1,048 + $3,136 x 36 + $3,155 X 324 - $0 - $0

= $1,136,164

Or:

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